Acquisition

Dowlis Corporate Solutions plc 28 February 2006 Date: 28th February 2006 On behalf of: Dowlis Corporate Solutions plc ('the Group' or 'Dowlis') Embargoed: 0700hrs Dowlis Corporate Solutions plc Acquisition of Ross Promotional Products Ltd Dowlis Corporate Solutions plc, the marketing solutions group, is pleased to announce today that its subsidiary Dowlis Corporate Solutions (UK) Limited has acquired the entire issued share capital of Ross Promotional Products Ltd ('Ross'), a Glasgow-based promotional gift company, for £825,000. The consideration will be paid £725,000 in cash and 210,526 ordinary shares in Dowlis, expected to be admitted to trading on 3rd March 2006. Turnover for Ross for the 2005 financial year was £1.81m (2004: £1.39m) with a profit before tax of £0.28m (2004: £0.18m). Net asset valuation of Ross was £0.26m, including cash of £0.265m. Commenting on the acquisition, Martin Varley, the Group's Chief Executive, said: 'Today's acquisition supports the Group's strategy for expansion in the UK and I am delighted to be able to welcome The Ross team into the Group. There are strong synergies between the existing Dowlis businesses and Ross, in particular the transaction gives the Group a Scottish base from which to serve the increasing client base in Scotland . The Ross team share our desire for quality, customer service and innovation and I am confident that customers from both companies will benefit from the combined resources.' - ENDS - Enquiries: Dowlis Corporate Solutions plc 0870 224 6677 Martin Varley (Chief Executive) 07775 848 252 Redleaf Communications Emma Kane/Miranda Good 020 7955 1410 Corporate Synergy PLC Rhodri Cruwys 020 7448 4450 Zeus Capital Alex Clarkson 0161 831 1512 Notes to Editors: • Publication quality photographs are available via Redleaf. • Dowlis has an experienced Board which comprises: Colin Cooke, Chairman, who has 21 years' experience as a public company director; Martin Varley, Chief Executive Officer, who has 17 years' experience in the promotional merchandise industry and has gained an extensive knowledge of the supply and distribution sectors of the market; David Gray, Finance Director, formerly finance director of Gowrings PLC for 10 years; and, Keith Willis, Non Executive Director, who recently received a lifetime achievement award from PROMOTA in recognition of his 30 years' contribution to the industry. • It is estimated that the annual UK market for promotional merchandise is £1 billion (source: PROMOTA), which comprises approximately 2,000 distributors supported by 600 UK based suppliers of a wide range of products and services. • The Group's maiden set of results are scheduled for announcement in March 2006 • The Group currently has four primary sales channels: Promotional Products - the Directors believe Dowlis is the second largest distributor of promotional products in the UK. It sources products from around the World which are then personalised in accordance with the client's brand and design guidelines in support of their wider marketing campaigns. Trade OnlyTM - suppliers to independent distributors via an annual catalogue, exhibition and website. Trade OnlyTM receives orders from approximately 25 per cent of the UK's distributors who access the Trade OnlyTM range which features 600 products all of which are branded to the distributors' specification. Information Services - a bespoke, industry specific website that contains detailed information on over 1,000 products including full details of the supplier and also detailed product information. Revenue is generated from suppliers wishing to be featured on the website. Dowlis Communications - a design agency based in Manchester, providing a range of services which cover all aspects of design and marketing, including print and brochure production, media planning and buying. It is expected that Dowlis Communications will provide the platform for a number of potential additional services that can be added to the Group's offering as the strategy to focus on marketing services is developed. The Group's offering is underpinned by its investment in software and information technology. Its bespoke sales order processing system and product database was carefully designed to complement the strategy of the Group. The Directors believe that it will provide the Group with a competitive advantage over others in the industry. This information is provided by RNS The company news service from the London Stock Exchange
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